Ewan Morrison has a long, and fascinating, article in The Guardian with the above title.  I would put it on the recommended reading list:

All of this ebook talk is becoming a business in itself. Money is being made out of thin air in this strange new speculative meta-practice: there are seminars, conferences and courses springing up everywhere, even at the Society of Authors (a writers’ union which, until recently, was largely against epublication). Television and radio programmes are being made about self-epublishing (I’ve personally been asked to speak about it on 12 occasions since August). Everyone can be a writer now: it only takes 10 minutes to upload your own ebook, and according to the New York Times “81% of people feel they have a book in them … And should write it”

But all of this gives me an alarming sense of deja vu. There’s another name for what happens when people start to make money out of speculation and hype: it’s called a bubble. Like the dotcom bubble, the commercial real estate bubble, the subprime mortgage bubble, the credit bubble and the derivative trading bubble before it, the DIY epublishing bubble is inflating around us. Each of those other bubbles also saw, in their earliest stages, a great deal of fuss made over a “new” phenomenon, which was then over-hyped and over-leveraged. But speculation, as we’ve learned at our peril, is a very dangerous foundation for any business. And when the epub bubble bursts, as all previous bubbles have done, the fall-out for publishing and writing may be even harder to repair than it is proving to be in the fields of mortgages, derivatives and personal debt. Because this bubble is based on cultural, not purely economic, grounds.

How do we know if we’re in a bubble?

To answer that we have to turn to respected economist Hyman Minsky. Minsky (1919-1996) studied recurring instability in markets and developed the idea that there are seven stages in any economic bubble (the following terminology is adapted from his Financial Instability Hypothesis [PDF]):